Amaravati, Aug 7 (KNN) The Andhra Pradesh government is to launch Navodayam, a complete outreach programme for thousands of Micro, Small and Medium Enterprises (MSMEs) in the state, with a one-time restructuring of loans that will provide the required lifeline for small industrial units.

The state cabinet approved the scheme at its recent meeting and the Department of Industries and Commerce subsequently worked out the modalities to make Navodayam operational.

While the state government has earmarked Rs 50 crore in the 2019-20 budgets for rejuvenation of MSMEs, the Department of Industries and Commerce approached the Reserve Bank of India for mobilizing required financial resources for the ambitious.

The state has been witnessing a surge in growth of MSMEs with over 10,068 units set up in 2018-19 with an investment of Rs 3,443 crore, providing employment to 93,240 people.

State Industries Minister Mekapati Goutham Reddy said, “In AP, MSMEs generate the maximum employment after agriculture. This is a state government initiative to rejuvenate and give topmost priority thrust to facilitate and coordinate growth and development of the MSME sector.”

Two sub-SLBC meetings have also been held with bankers in the state for getting the NPA accounts of MSMEs restructured so that the respective accounts are brought back to ‘standard’ level, the sources said.

Under Navodayam, a special cell is being created at each District Industries Centre, headed by the General Manager, to provide handholding support to all restructured MSMEs for six months to stabilize the accounts.